Ardagh seeks permission for demerger

Date: 15 January 2003
Source: FT
The battle for control of Ardagh, one of the largest glass makers in the UK, looks set to be settled this week when shareholders meet to approve a demerger of the Irish company's manufacturing operations.

The demerger plan requires 75 per cent support, but it already has the backing of the largest shareholders - HG Capital with 30 per cent and Yeoman, an investment vehicle set up by Paul Coulson, the Ardagh chairman, which has 23.2 per cent.HG Capital, formerly part of Mercury Asset Management, has agreed to take cash, at €1.10 a share, if the demerger is approved.

This is less than the €1.70 which Sean Quinn, a rival glass producer in Northern Ireland offered shareholders, which the board rejected on Friday. Some shareholders have complained to the stock exchange that the independent directors should have considered the Quinn bid. Quinn now wants its offer to be put to the extraordinary meeting on Wednesday.

But one Dublin broker said yesterday Ardagh was worth closer to €5 a share if its recently announced option to buy Heye Glass in Germany is included. Florence O'Donoghue, of Davys, calculates projected earnings before interest, tax, depreciation and amortisation could reach €90m (£58m), compared with €65m achieved in 2001.

Ardagh closed its Irish glass plant last summer, in the face of competition from the much larger Quinn plant, which receives Northern Ireland grant support. However, the move did much to improve the problem of overcapacity in the market, and helped lift glass prices in the UK where it is one of the largest manufacturers with about 38 per cent of the market, having acquired Rockware from Owens Illinois, the US group, in 1999.

Ardagh also has a small Italian operation making beer glasses.

The battle for control of Ardagh comes amid wider consolidation moves in the European glass industry with Rexam, the UK consumer packaging company, announcing a second glass container acquisition in Germany.

600450 Ardagh seeks permission for demerger
Date: 15 January 2003
Source: FT

See more news about:

Others also read

Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.
Praxair, Inc. (NYSE: PX) today announced that its subsidiary Praxair Canada Inc.'s specialty gases plant in Paris, Ontario, Canada, is one of Praxair's first specialty gases plants in North America to complete the upgrade to ISO 9001:2000, the latest ISO 9000 standard for quality.

Add new comment